Conclusion

Low-cost country sourcing of agricultural inputs is the current phase of the outsourcing phenomena. As more and more CPG companies based in the West feel the heat of increasing agricultural input price they will turn toward countries like India, Malaysia, and Thailand to source their agricultural inputs. However, LCCS agricultural sourcing, like any other cost rationalization measure, is only as good as the results it delivers. Proper implementation, as suggested in this article, will ensure the delivery of optimum results on a sustainable basis.

References

1. Low cost country sourcing strategies for success June 2005, Aberdeen Research
2. Low Cost country sourcing, Its more complex than you think, AMR Research, Dec 2004
3. Tips for Low Cost country sourcing, October 2006, Purchasing.com

Research

1 & 2 Source: Infosys Research 2007
3 & 4 Source: Aberdeen Research, June 2005 — Low-cost Country Sourcing Strategies

About the Authors: Amitava is a consultant in the Retail & CPG practice for Infosys Technologies Ltd. He has over six years of procurement and sourcing experience in the CPG industry. His expertise lies in the spheres of strategic sourcing, procurement planning, and vendor and inventory management. He has a management degree from the Institute of Rural management, Anand. He can be reached at amitava@infosys.com.

Rrituraj is a consultant in the Retail & CPG Practice for Infosys Technologies Ltd. He has over eight years of experience in CPG and retail industry. His expertise lies in marketing, front-line sales management, strategic sourcing, procurement planning, and vendor and inventory management. He has a management degree from the MANAGE, Hyderabad. He can be reached at Rrituraj_Sharma@infosys.com.

Takshay is a consultant in the Pharmaceutical and Supply chain Practice for Infosys Technologies Ltd. He has over five years of experience in CPG and pharmaceutical industry. His expertise lies in strategic sourcing, procurement planning, vendor and inventory management, and various aspects of supply chain management. He has a management degree from the Institute of Rural management, Anand. He can be reached at Takshay_Aggarwal@infosys.com.